Sweet and salty: Despite falling revenue, higher olive prices have led to rising profitability

The Olive Growing industry is highly fragmented. The industry includes numerous small hobby farms and small olive producers without a strong brand that grow fruit for the bulk olive oil market. The industry also includes large vertically-integrated companies that supply table olives for supermarkets, target export markets and engage in olive oil manufacturing. As a result, the scale of olive production varies significantly among operators.Olive production has been volatile over the past five years. Growing olives is highly dependent on optimal growing conditions. As olives are water intensive crops, annual rainfall and water availability influence production. As rainfall and water extraction are typically volatile, industry revenue often fluctuates from year to year...read more.

Industry Statistics & Market Size
Revenue
$224m
Annual Growth 13-18
-0.4%
Forecast Growth 18-23
Profit
Employment
696
Businesses
354
Market Share of Companies

Industry Threats & Opportunities

  • Farmers face competition from imports of downstream final products such as olive oil
  • Olive oil shortages in the Mediterranean have caused the world price of olive oil to rise
  • Growing demand for olives is expected to encourage industry participation over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The Olive Growing industry is in the mature phase of its economic life cycle. Industry value added (IVA), which measures an industry's contribution to the overall economy, is projected to grow at an annualised 1.6% over the 10 years through 2022-23. This represents an underperformance relative to the economy, with GDP forecast to grow at an annualised 2.5% over the same period. This underperformance is indicative of a mature industry.Olive growing is moving towards large-scale production, although rising demand for high-quality local produce is allowing some scope for smaller farms to operate in the industry. The number of establishments in the industry has declined over the period. Ind...purchase to read more.

    Additional Insights for the Olive Growing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Olive Growing Industry are

  • Appropriate climatic conditions
  • Output is sold under contract - incorporate long-term sales contracts
  • Access to irrigation water
  • IBISWorld analysts also discuss how external factors such as Demand from cooking oil and margarine manufacturing and Availability of water in the Olive Growing industry impact industry performance..

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    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from cooking oil and margarine manufacturing
  • Availability of water
  • Health consciousness
  • Level of annual rainfall
  • Trade-weighted index

  • Current Performance
  • Consumer consumption
  • Trading conditions
  • Changing operations
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumption trends
  • Challenges
  • Profit and participation
  • Table: Olive Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Olive Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fruit and Vegetable Processing
  • Fruit and Vegetable Wholesaling

  • Key Selling Industries
  • Livestock and Other Agricultural Supplies Wholesaling
  • Shearing, Cropping and Agricultural Support Services
  • Water Supply

  • Products & Services
  • Olives for unrefined oil
  • Olives for refined oil
  • Olives for consumption
  • Olives for food processing
  • Chart: Olive Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Food processors
  • Other
  • Chart: Major Market Segmentation for the Olive Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Olive Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Olive Growing Industry

  • Industry Globalization
    Boundary Bend Limited,
  • Table: Boundary Bend Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Olive Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Olive Growing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Extra-Virgin Olive Oil
  • The highest quality oil that can be produced from olives. Extra-virgin olive oil attracts higher prices and margins for farmers.
  • Farmgate Prices
  • The price the farmer receives for their produce.
  • Wholesale Bypass
  • Where primary producers interact directly with processors or retailers, eliminating the need for wholesale services.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Olive Growing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Olive Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Olive Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Olive Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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